Regulated markets Standardisation & Grading Recent trends Finance & Agricultural marketing Globalisation & its effects

E Choupal

Elected Market Committee Reps of farmers, producers, commission agents, wholesalers and govt. nominees (Director of State Agricultural Marketing Board etc) License given to all parties involved commission agents, wholesalers, weigh men, loaders/unloaders etc

Open auction method of sale

Market charges vary from state to state Payment of goods on the same day Provision for settlement of disputes with arbitration committee

Provision of physical facilties canteen, drinking water, cattle shed, storage, godowns, grading labs auction platforms, parking spaces etc Provision for grading, standardisation of produce, weighment of produce etc

Process of determining of classes or grades of a product/service with fixed limits Standards are established on the characteristics like weight, size, color, appearance, texture, moisture, ripeness, taste, etc Grading is division of products into similar classes

Improves physical handling of goods goods of similar standards can be stored/transported together Encourages marketing of produce (of higher standards) by farmers Reduces risk of purchase by wholesalers/firms Provides easy availability of finance Helps increase exports

Reduction in length of supply chain Modern communication methods Better transportation Improved infrastructure warehousing, cold storage etc Standardisation and grading Concept of contract farming becoming popular

Traditionally dominance of private money lenders, traders and agents Role of financial institutions more prominent in recent years Types of credit: Short term Medium Term Long term

National Bank for Agriculture and Rural Development Apex body looking after rural credit requirements It provides loans to State Cooperative Banks and Regional Rural Banks Short term loans upto 18 months, medium term upto 7 years and long term upto 25 years Overlooks and inspects functioning of SCBs and RRBs Maintains R & D fund for research in agriculture and rural development

Higher standard of living Better profits to agro based firms Improvement in product standards Better employment opportunities Optimum use of natural resources Economic Growth Attracts more FDI

Initiative by ITC

Provides computer with internet connection to farmers

Good source of information and discussion for farmers across the country Main motive is to conduct agricultural commodity trading at multiple locations By passes the middlemen and their charges The internet kiosk located at an influential person in village the Sanchalak He has access to entire site contents

Farmer brings sample to sanchalak

He inspects the produce, assesses the quality and gives a quote to the farmer
The quote is given on basis of previous day mandi prices that Sanchalak finds through the website The farmer may choose to sell via ITC He is given written note of details of the sample and the quoted price

Sanchalak takes the sample to nearest ITC procurement centre A chemist tests the sample
If approved, the farmer collects his full payment from the centre